BRICS+ Expansion: A Game Changer for the Global South
The world is witnessing a significant shift as the BRICS group expands into BRICS+, marking a new chapter for the Global South. Originally formed in 2006 with Brazil, Russia, India, and China, and later joined by South Africa in 2011, BRICS has been a powerhouse in global economics. Now, with the addition of six new members—Ethiopia, Egypt, Iran, Indonesia, Saudi Arabia, and the United Arab Emirates—the group is set to make an even bigger impact.
The upcoming 17th BRICS Summit in Rio de Janeiro, Brazil, will see this expanded lineup for the first time. Not only that, but the introduction of the BRICS partner country category brings in ten more nations: Bolivia, Belarus, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam. With Indonesia and Vietnam joining, BRICS+ is making its first expansion into Southeast Asia, a vital global trade hub.
Together, the 11 member countries represent over 40% of the world’s population, produce and export 40% of global oil, and account for 40% of global trade. This expansion means larger markets, more resources—including energy—and vast potential for investment. For the Global South, this could be a game changer.
A Shift in Global Economic Dynamics
BRICS+’s growth signals a quiet but powerful shift in the global economic landscape. Cooperation among BRICS members has significantly boosted South-South trade, reducing reliance on traditional markets and strengthening networks of supply chains. From 2002 to 2021, total global trade among BRICS countries skyrocketed from $572 billion to over $4 trillion—a more than sevenfold increase.
This trend isn’t just benefiting BRICS nations. South-South trade as a whole has more than doubled from $2.3 trillion in 2007 to $5.6 trillion in 2023. The expansion into Southeast Asia with Indonesia, the region’s largest economy, promises even more trade potential, empowering sustainable and inclusive global commerce.
Unlocking Investment Opportunities
Beyond trade, BRICS+ offers new avenues for investment. In 2023, the Chinese mainland was among the world’s top three recipients of foreign direct investment (FDI), while Brazil and India saw significant increases. Adding major FDI destinations like the United Arab Emirates, Saudi Arabia, Indonesia, and Vietnam opens doors to new investment in the Middle East and Southeast Asia.
BRICS nations have seen annual FDI inflows grow from $84 billion in 2001 to $355 billion in 2021. Their share of global FDI inflows has doubled, highlighting their growing influence. This influx facilitates technology transfer and capital inflows, helping member countries tackle challenges like climate change and drive sustainable development.
BRICS+ vs. G7: Shifting Economic Power
Since 2000, the original BRICS countries have expanded their share of global GDP (measured by purchasing power parity) from 21% to nearly 35%. In contrast, the G7’s share has dropped from 43% to 30%. In 2018, BRICS overtook the G7 in terms of global GDP share, and the gap continues to widen.
Looking Ahead
At the upcoming BRICS Summit, leaders will focus on how the expanded group can reshape South-South trade, investment, and financing. For the Global South, BRICS+ represents a promising opportunity to create a more inclusive and equitable global economic landscape.
